1&2 Price (millions per plane)Total cost (millions per month)Total revenue (millions per month)Hint: Find MR and MC for each output levela) AVC - priceb) ATC = pricec) MR = MC.0d) ATC and AVC are both at a minimum.$1The firm in Table 3 achieves the most profitable rate of output byapplying which of the following rules?Output (planes per month)13$9$32$8$7$7$124$6$20 a) $7 million per planeOb) $9 million per planeOc) $8 million per plane0Price (millions per plane)Total cost (millions per month)Total revenue (millions per month)Hint: Find MR and MC for each output levelIn Table 3, the price at which profit maximization is achieved is:d) $6 million per planeOutput (planes per month)13$9$3$12$8$7$7$124$6$20

Profit is the difference between the total revenue and total cost. Also the most profitable rate of…

Price (millions per plane) Total cost (millions per month) Total revenue (millions per month) Hint: Find MR and MC for each output level a) AVC - price b) ATC = price Oc) MR = MC. 0 d) ATC and AVC are both at a minimum. --- $1 Output (planes per month) 1 3 $9 $3 The firm in Table 3 achieves the most profitable rate of output by applying which of the following rules? 2 $8 $7 $7 $12 4 $6 $20

Price (millions per plane) Total cost (millions per month) Total revenue (millions per month) Hint: Find MR and MC for each output level a) AVC - price b) ATC = price Oc) MR = MC. 0 d) ATC and AVC are both at a minimum. --- $1 Output (planes per month) 1 3 $9 $3 The firm in Table 3 achieves the most profitable rate of output by applying which of the following rules? 2 $8 $7 $7 $12 4 $6 $20

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 14CQ

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